BSE to launch Sensex Futures in the US

Mumbai, April 3 (IANS) The Bombay Stock Exchange (BSE) will launch trading of Sensitive Index-based Futures on the US Futures Exchange (USFE) in Chicago from Friday. Trading of Sensex Futures at USFE will allow eligible US investors to directly participate in India’s equity markets for the first time, without requiring American Depository Receipt (ADR) authorization.

BSE managing director and CEO Rajnikant Patel said Thursday: “The launch of a futures contract based on the Sensex will facilitate overseas investors in taking exposure to the Indian equities.”

“I am confident the listing of the dollar denominated Sensex contract on USFE will elicit a very positive response from the international investing community,” he added.

The contract will have a notional value of $40,000 and a tick value of $10. The clearing and settlement will take place through The Clearing Corporation, Chicago.

USFE’s US dollar-denominated Sensex futures contract will trade 23 hours per day and settle monthly to the corresponding value of BSE’s futures contract.

Expected market participants include hedge funds and institutions, international mutual funds, and individuals seeking investments in Indian markets.